Question
For The Craddock Cup Guidance Questions A.On what basis are the costs in the Excel template classified as variable or fixed? B.Would Rivaldo's salary be
For The Craddock Cup
Guidance Questions
A.On what basis are the costs in the Excel template classified as variable or fixed?
B.Would Rivaldo's salary be reduced if he no longer spent time organizing the Cup? What about the salaries of the part-time employees?
C.Are the rent and utilities for CYSL facilities relevant regardless of whether or not the organization continues to hold the Cup?
D.What costs are included in Exhibit 2 of the case itself but excluded from the Excel template?Why?(HINT:Think back to the class periods on information relevance, to common pitfalls in identifying relevant information).
E.Based on the facts in the case, how are the amounts in Exhibit 2 computed?Based on that, how can the amounts for the two expansion alternatives be computed?
F.For the two expansion alternatives, what assumptions do you make about how revenues and costs will change, and how do you believe the amounts should be computed?Make sure such assumptions and computations are reasonable, and state them clearly so Jose himself can assess whether they are reasonable.
a) Jose and the Board are looking at Exhibit 2 of the case and concluding that the Cup is losing money.Do you agree, and why or why not?
b)Is the Craddock Cup meeting its goal of generating at least $6,000 annually toward the field acquisition program?
c)What qualitative factors might it be important for Jose to consider when choosing from amongst the alternatives?
d)Which alternative should Jose choose, and why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started